Nonlinear Dynamical Systems in Economics

1. Front Matter

   Pages i-ix

   PDF

2. Introductory Notes on the Dynamics of Linear and Linearized Systems

   • Marji Lines, Alfredo Medio

   Pages 1-25

3. Complex and Chaotic Dynamics in Economics

   • Duncan Foley

   Pages 27-66

4. Ergodic Theory of Nonlinear Dynamics

   • Alfredo Medio

   Pages 67-101

5. Local Bifurcation Theory Applied to OLG Models

   • Marji Lines

   Pages 103-130

6. Heterogeneous Agent Models: two simple examples

   • Cars Hommes

   Pages 131-164

7. Complex Oligopoly Dynamics

   • Tonu Puu

   Pages 165-186

8. Coexisting Attractors and Complex Basins in Discrete-time Economic Models

   • Gian Italo Bischi, Fabio Lamantia

   Pages 187-231

Many problems in theoretical economics are mathematically formalized as dynam­ ical systems of difference and differential equations. In recent years a truly open approach to studying the dynamical behavior of these models has begun to make its way into the mainstream. That is, economists formulate their hypotheses and study the dynamics of the resulting models rather than formulating the dynamics and studying hypotheses that could lead to models with such dynamics. This is a great progress over using linear models, or using nonlinear models with a linear approach, or even squeezing economic models into well-studied nonlinear systems from other fields. There are today a number of economic journals open to publishing this type of work and some of these have become important. There are several societies which have annual meetings on the subject and participation at these has been growing at a good rate. And of course there are methods and techniques avail­ able to a more general audience, as well as a greater availability of software for numerical and graphical analysis that makes this type of research even more excit­ ing. The lecturers for the Advanced School on Nonlinear Dynamical Systems in Economics, who represent a wide selection of the research areas to which the the­ ory has been applied, agree on the importance of simulations and computer-based analysis. The School emphasized computer applications of models and methods, and all contributors ran computer lab sessions.

• agents
• dynamical systems
• economics
• ergodic theory
• financial markets
• game theory
• industrial organisation
• macroeconomics
• microeconomics
• nonlinear dynamics
• systems theory

• University of Udine, Italy

  Marji Lines

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